ONGC awards contract for Integrated (SPS + SURF) Work Package for Development of its Mega Deep Water Project KG-DWN-98/2 (Cluster-2) in East Coast

Dated : 03 October 2018 08:23:00 PM

ONGC’s mega deepwater development initiative for integrated development of KG-DWN-98/2 (Cluster-2) Project in East Coast of India took a leap forward with the award of a major work package, viz. SPS + SURF (Subsea Production System + Subsea Umbilical, Risers & Flow lines) to Consortium of BHGE, McDermott and L&T hydrocarbon on 01.10.2018 with awarded cost of Rs. 11,740.86 Crores (USD 1694.45 Million). This tender is one of the biggest integrated (SPS + SURF) tenders awarded globally in recent years.

ONGC took a strategic decision of integrating hitherto separate work packages of SPS and SURF into a single integrated (SPS + SURF) work package tender. This will help to eliminate major interface issues among SPS and SURF packages, resulting in time and cost optimization to the company. This innovative approach by ONGC has been widely appreciated by global major contractors of SPS and SURF.

Cluster-2 development will have water depths ranging from 350m to 1,400m and is one of the most capital intensive and technologically challenging projects in East Coast of India. Total peak gas production rate from Cluster-2 is envisaged to be about 16 MMSCMD and peak oil production rate of 80,000 BPD.

ONGC envisages commencement of first gas production by December 2019, first oil by March 2021 and over all project completion by August 2021. This project will also have key contribution in fulfilling Hon’ble Prime Minister’s clarion call to achieve 10% reduction in import dependency on energy by 2022.